Firm and employee effects of an enterprise information system: Micro-econometric evidence
We investigate the impact of adopting an Enterprise Resource Planning (ERP) system in a retail chain and find interesting parallels between firm and employee outcomes. Concerning performance: (i) sales and inventory turnover initially drop by 7% and recover in 6-12 months; (ii) inventory turnover recovers more quickly for establishments adopting ERP later; and (iii) broader training produces faster sales recovery. Concerning employee outcomes, initially work intensifies, but in time employee outcomes improve. An implication for practitioners is that ERP success is best evaluated only when sufficient time has elapsed after implementation. Employers need to be aware that measures to minimize negative outcomes associated with implementation of enterprise information systems may be needed.
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- Timothy F. Bresnahan & Erik Brynjolfsson & Lorin M. Hitt, 2002. "Information Technology, Workplace Organization, and the Demand for Skilled Labor: Firm-Level Evidence," The Quarterly Journal of Economics, Oxford University Press, vol. 117(1), pages 339-376.
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- Erik Brynjolfsson & Lorin M. Hitt, 2000. "Beyond Computation: Information Technology, Organizational Transformation and Business Performance," Journal of Economic Perspectives, American Economic Association, vol. 14(4), pages 23-48, Fall.
- Plaza, Malgorzata & Rohlf, Katrin, 2008. "Learning and performance in ERP implementation projects: A learning-curve model for analyzing and managing consulting costs," International Journal of Production Economics, Elsevier, vol. 115(1), pages 72-85, September.
- David H. Autor & Frank Levy & Richard J. Murnane, 2002. "Upstairs, Downstairs: Computers and Skills on Two Floors of a Large Bank," ILR Review, Cornell University, ILR School, vol. 55(3), pages 432-447, April.
- Motwani, Jaideep & Mirchandani, Dinesh & Madan, Manu & Gunasekaran, A., 2002. "Successful implementation of ERP projects: Evidence from two case studies," International Journal of Production Economics, Elsevier, vol. 75(1-2), pages 83-96, January.
- Maryellen R. Kelley, 1994. "Productivity and Information Technology: The Elusive Connection," Management Science, INFORMS, vol. 40(11), pages 1406-1425, November.
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